The Trustee Sustainability Working Group (TSWG), a cross-industry trustee group, has outlined its priorities for 2025, emphasising the need to work with regulators on climate scenario analysis and reporting requirements for small schemes.

The group, which was launched in December last year, said that it will be looking to work with regulators and other market participants to clarify guidance for climate scenario analysis, drawing on reports such as the Institute and Faculty of Actuaries Planetary Solvency.

In addition to this, the group’s policy efforts will focus on stopping the development or approval of new fossil fuel projects, although it clarified that this does not mean disinvestment "at this point".

The group said it also intends to assist the industry in putting in place a transition plan for large schemes with real-world impact, with the aim of rolling out established good practices to other schemes.

The group said it believes this will replace the Task Force on Climate-Related Financial Disclosures (TCFD) and negate the need for the Taskforce on Nature-related Financial Disclosures (TNFD) and the Taskforce on Inequality and Social-related Financial Disclosures (TSFD).

Given this, another key priority for 2025 is securing buy-in from regulators to amend the implementation statement for small schemes and provide some transitional relief.

The group said it also aims to build on small scheme’s success with ShareAction in 2024 by encouraging small schemes to participate in a targeted number of stewardship issues each year.

In addition to this, the TSWG said it plans to provide a "clear view" on significant issues debated over the past few years, "building on most of the points above but throwing in any other issues we think of".

The group noted that these objectives remain under constant discussion and could evolve throughout the year.

TSWG is comprised of professional trustees, including representatives from HS Trustees, Dalriada, Independent Governance Group, members of the Association of Member Nominated Trustees and other interested trustees.

However, the group clarified that these priorities reflect the majority view of the working group and are not necessarily the view of all the firms represented.

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